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You have just answered 50 questions at this point of the exam.  Approximately 50 minutes should have gone by, which means you should have 48 minutes left on the exam timer.  Take a deep breath, relax, and use all of the time that is available to you.  Do you understand that you do not need to rush through these questions and that you should have 48 minutes left to complete the rest of this exam?

The Ricardian model attributes the gains from trade associated with the principle of comparative advantage result to

The gravity model suggests that over time

Refer to above figure. Answer the following questions (15 points; 10 minutes)a. With free trade and no tariffs, what is the quantity of Widgets consumed domestically?b. With free trade and no tariffs, what is the quantity of Widgets imported?c. With a specific tariff of $3 per unit, what is the quantity of Widgets produced domestically?d. Once a tariff is imposed, what is the value of the loss in consumer surplus? (hint: area of a triangle =1/2 base x height; and area of rectangle = base x height)

There is a bias in the political process against free trade because

If a good is imported into country H from country F, then the imposition of a tariff in country H

Two basic models of international trade are the simple trade “openness” model and the gravity model. Please write the equations that represent both models, discuss what information they provide, and discuss how the models differ, and, importantly, what determinants of trade each might overlook. (5 points; 5 min)

It is argued that a tariff may help promote employment in a single industry, but is not likely to help employment in general. Why? Discuss. (5 points; 5 min.)

In lecture, we discussed the political economy of trade policy. In that discussion, we constructed Tullock’s Rectangle within an imperfectly competitive firm supply (i.e., MC) and demand framework. Please discuss, in detail, Tullock’s Theory. Be sure to address the following (15 points; 15 min.): a. What year was Gordon Tullock born, and what year did he win the Nobel Prize in Economics? b. What is the Harberger triangle and how does Tullock’s Rectangle relate? c. Explain the theory of Tullock’s Rectangle (i.e., what does the value captured by the area of the rectangle represent, according to Tullock?). d. Explain the Collective Action Problem and how it relates to Tullock’s ammendment to our basicknowledge of dead-weight loss.

CH3CHOCH3 is a haloalkane.